Computer_lab_1 (1)
xlsx
keyboard_arrow_up
School
Southern New Hampshire University *
*We aren’t endorsed by this school
Course
401
Subject
Finance
Date
Jan 9, 2024
Type
xlsx
Pages
19
Uploaded by ChancellorQuailPerson1000
SINGLE CASH FLOW
Inputs
Single Cash Flow
Discount Rate / Period
Number of Periods
Present Value using the Formula
Present Value
Present Value using the PV Function
Present Value
Problem: Your company has told you that you if you remain employed with them, you will receive a $50,000 bonus four years from today. Assume a discount rate of 8%. Fill in this spreadsheet, calculating the present value in two different ways.
ANNUITY
Inputs
Payment
Discount Rate / Period
Number of Periods
Annuity Present Value using a Time Line
Period
0 1
2 3
4 5
6 Cash Flows
Present Value of Each Cash Flow
Present Value
Annuity Present Value using the PV Function
Present Value
Compare PV to:
Lump sum option
Assumptions:
For the lump sum option: Use the pretax lump sum am
Difference (Annuity PV - Lump sum)
For the annual payments option: Use the pretax amo
Problem: Kenny Dukes, Lottery Winner.
Refer to the newspaper article below to answer the questions.
Source: https://apnews.com/article/469b7ec36de78ed6207402c987179341
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
7
8 9
10 11
12 13
14 15
16 17
mount of $16.1 Million
ount of $1 Million at the end of each year for the next 30 years and include a $1 Million payment immediately
18 19
20 21
22 23
24 25
26 27
28
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
29
30
ANNUITY
System of Four Annuity Variables
Inputs
Payment
$576.64 Discount Rate / Month
0.5% Number of Months
60 Present Value
$29,827 Payment
Payment using the PMT Function
Discount Rate / Period
Discount Rate / Month using the RATE Function
2019 Audi A3
Number of Periods
Num of Periods using the NPER Function
Present Value
Present value using the PV Function
Problem: You're interested in buying the vehicle shown below. The price is $29,827, and you will get a 60-month loan at 6%. All required information is given, but use various Excel functions to solve for the payment, the discount rate, the number of periods, and the present value.
NPV and IRR
(in thousands of $)
Inputs
Discount Rate
Period
0
1
2
3
4
5
Cash Flows
- $45 $80 $130 $210 $190 Net Present Value using the NPV Function
Net Present Value
Internal Rate of Return using the IRR Function
IRR
Problem: An investment of $225 today is expected to bring the future cash flows shown below. Start with a discount rate of 11%.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Present Value
Inputs
Payment under revised contract
$1,193,248 Discount Rate / Period
8.00%
Present Value using a Time Line
Period
2000 2001
2002 2003
2004 2005
2006 Cash Flows from current contract
Cash Flows from revised contract
Present value of current contract
Present value of revised contract
Difference (current - revised)
Problem: Bobby Bonilla, problem player.
Refer to the newspaper article below to answer the questions.
Source: https://www.espn.com/mlb/story/_/id/31732959/bobby-bonilla-day-explained-why-mets-pay-119m-tod
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
2007
2008 2009
2010 2011
2012 2013
2014 2015
2016 2017
day-every-july-1
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
2018 2019
2020 2021
2022 2023
2024 2025
2026 2027
2028
2029
2030 2031
2032 2033
2034 2035
Lease or Buy
Inputs
Asset cost
Annual lease payment
Interest rate
Number of years to lease
Dell Precision M2300 64-bit Workstation
Period
0
1
2
3
4
Buy cash flows
Lease cash flows
PV of Buy cash flows
PV of Lease cash flows
Lease or Buy?
Problem: You're deciding whether to lease or buy a new computer that your business needs. You can buy it at Dell's price for $1,667, or you can lease it for 4 years (your expected use) for $490 per year, with payments made at the beginning of the year. Should you buy or lease?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
ANSWERS
Q1
$36,751.49
Q2
$12,257,783
Q3
The lump sum gives a higher present value.
Q4
$18,292,033
Q5
Now the annuity is better.
Q6
5.16%
Q7
Already given.
Q8
Already given.
Q9
Already given.
Q10
Already given.
Q11
$226.61
Q12
37%
Q13
$365.99
Q14
Current
$5,900,000
Q15
Revised
$29,831,205 (Compare to value given in article.)
Q16
8% (Compare to rate stated in article.)
Q17
$1,609 Q18
Lease
Q19
Buy
Q20
12%
Related Documents
Related Questions
Please show excel formulas
arrow_forward
help this final
arrow_forward
You will deposit $30,000 per year into an account beginning today that pays 13 percent per year. How long (in years) would it take for you want have a total of $1,000,000 at retirement?
m
Nper (or N) =n*m
Rate (or I/Y)=i/m
PV
PMT
FV
Identify variables and use excel
arrow_forward
Using a present value table, your calculator, or a computer program present value function, answer the following questions: See Table 6-4 and Table 6-5 (Use the appropriate factor by clicking on the appropriate Table links.)Required:
What is the present value of nine annual cash payments of $2,000, to be paid at the end of each year using an interest rate of 4%?
What is the present value of $20,000 to be paid at the end of 22 years, using an interest rate of 16%?
How much cash must be deposited in a savings account as a single amount in order to accumulate $300,000 at the end of 10 years, assuming that the account will earn 8% interest?
How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of 12 years, assuming that the account will earn 12% interest?
Assume that a machine was purchased for $55,900. Cash of $15,300 was paid, and a four-year, 12% note payable was signed for the balance.
Prepare the horizontal model and…
arrow_forward
What is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is received 7 years from now and you receive a total of 25 annual payments?
Could you please show how this can be solve by using Excel? Thank you.
arrow_forward
Can you please solve this questions
arrow_forward
You will deposit $30,000 per year into an account beginning today that pays 13 percent per year. How long (in years) would it take for you want have a total of $1,000,000 at retirement?
m
Nper (or N) =n*m
Rate (or I/Y)=i/m
PV
PMT
FV
Must identify variables and use excel
arrow_forward
1. Calculate the present value of each cashflow using a discount rate of 7%. Which do you prefer most?
Show and explain all supporting calculations.
a. Cashflow A: receive Php60 today and then receive Php60 in four years.
b. Cashflow B: receive Php12 every year, forever, starting today.
Cashflow C: pay Php50 every year for five years, with the first payment being next year,
and then subsequently receive Php30 every year for 20 years.
d. Cashflow D: receive Php9 every other year, forever, with the first payment being next
C.
year.
arrow_forward
An annuity pays $200 at the end of each period for 10 periods. Set up the CFs in an Excel spreadsheet. The current value of this stream of CFs is $1,544. What is the implied discount rate? Solve the problem using the following approaches: a. Use trial and error or Goal Seek in Excel (tab Data/What-if-Analysis). b. Use the excel built-in function RATE.
arrow_forward
Annuity Formulae Problem.
only need help with d,e,f please.
please type and explain
You may want to use a spreadsheet to actually find
the solutions to some of these problems. But make
sure to write out the equations you need to solve in
your answers.
a. What is the present value of 15 annual payments
of $100, with the first payment one year from now,
if the discount rate is 0.05?
b. What is the present value of 15 annual payments
of $100, with the first payment right now, if the
discount rate is 0.05?
c. What is the present value of 15 annual payments
of $100, with the first payment five years from now,
if the discount rate is 0.05?
d. At what discount rate would the present value of
15 annual payments of $100, with the first payment
right now, be 0?
e. How many annual payments of $100, with the
first payment right now, would it take to be worth
more than $1,000, if the discount rate is 0.05?
f. What is the value of 15 annual payments which
begin at $100 one year from now and increase…
arrow_forward
Use the present value and future value tables to answer the following questions.
Time Value of Money - Principles of Accounting, Volume 2: Managerial Accounting | OpenStax
A. If you would like to accumulate $2,400 over the next 5 years when the interest rate is 15%, how much do you need to deposit in the account?
$_____
B. If you place $6,200 in a savings account, how much will you have at the end of 6 years with a 12% interest rate?
$_____
C. You invest $7,000 per year for 11 years at 12% interest, how much will you have at the end of 11 years?
$_____
D. You win the lottery and can either receive $760,000 as a lump sum or $60,000 per year for 19 years. Assuming you can earn 8% interest, which do you recommend and why?
_____
arrow_forward
Need answers this question general Accounting
arrow_forward
Please help me with show all calculation thanku
arrow_forward
solve this practice problem
arrow_forward
You are currently investing your money in a bank account which has a nominal annual rate of 7 percent, compounded monthly. How many years will it take for you to double your money?
m
Nper (or N) =n*m
Rate (or I/Y)=i/m
PV
PMT
FV
Must identify variables and use excel
arrow_forward
Question Content Area
Use the present value and future value tables to answer the following questions.
A. If you would like to accumulate $2,500 over the next 3 years when the interest rate is 15%, how much do you need to deposit in the account?
$fill in the blank 1
B. If you place $6,300 in a savings account, how much will you have at the end of 8 years with a 12% interest rate?
$fill in the blank 2
C. You invest $9,000 per year for 9 years at 12% interest, how much will you have at the end of 9 years?
$fill in the blank 3
D. You win the lottery and can either receive $740,000 as a lump sum or $60,000 per year for 19 years. Assuming you can earn 8% interest, which do you recommend and why?
Please round off answers
arrow_forward
Mastery Problem: Time Value of Money
Time value of money
Due to both interest earnings and the fact that money put to good use should generate additional funds above and beyond the original investment, money tomorrow will be worth less than money today.
Simple interest
Ross Co., a company that you regularly do business with, gives you a $11,000 note. The note is due in three years and pays simple interest of 10% annually. How much will Ross pay you at the end of that term? Note: Enter the interest rate as a
decimal. (i.e. 15% would be entered as .15)
Principal
( Principal
Rate
Time
Total
+
($
X
years
arrow_forward
2
arrow_forward
Please Provide Answer with calculation
arrow_forward
I need the manual excel formula as well as the FV Excel Function.
C. Suppose you save $2,800 a year for 43 years into an investment account that earn 8.5% return, how much will you have at the end of the periods?
Formula
$ ???
Excel Functon
$1,066,616.08
arrow_forward
If you were to use the TVM Solver to determine how much money would be in an
account (that earns 1.2% interest compounded monthly) after 32 years when $175
was deposited into the account at the end of each month, then you would enter
N =
1% =
PV =
PMT =
FV =
and P/Y = C/Y =
Which of the variables above did you solve for (N, 1%, PV, PMT, or FV)?
arrow_forward
Find the following valuesusing the equations and then a financial calculator. Compounding/discounting occursannually.a. An initial $600 compounded for 1 year at 6%b. An initial $600 compounded for 2 years at 6%c. The present value of $600 due in 1 year at a discount rate of 6%d. The present value of $600 due in 2 years at a discount rate of 6%
arrow_forward
why python?
arrow_forward
PLEASE don't use excel for this. Show the
solution with formula needed.
ENGINEERING ECONOMICS using Annuity
1. An investor deposits P10,000.00 at the
end of each year in an account which
gives a nominal annual interest of 5%
compounded continuously. How much
sum will he accumulate in 10 years? And
Draw the cash flow diagram.
arrow_forward
Jenny puts $200 into a savings account today, the account pays an annual interest rate of 5%, but compounded semiannually, and you withdraw $100 after 6 months. What would your ending balance be 20 years after the initial $100 deposit was made?
m
Nper (or N) =n*m
Rate (or I/Y)=i/m
PV
PMT
FV
Identify variables and use excel
arrow_forward
What is the equivalent uniform annual payment for the following cash flows if the interest rate is 10%?
Populate the following table and compute the equivalent uniform annual payment. Show all work and
provide an explanation. Do not use Excel.
[Hint: This problem is a mix of annuity, gradient, and a single future cash flows.]
ΕΟΥ
Cash Flows
Annuity
Gradient
Future
1
$2,000
2
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$14,000
IN
3
st
4
5
6
7.
8
9
10
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you

Pfin (with Mindtap, 1 Term Printed Access Card) (...
Finance
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning
Related Questions
- Please show excel formulasarrow_forwardhelp this finalarrow_forwardYou will deposit $30,000 per year into an account beginning today that pays 13 percent per year. How long (in years) would it take for you want have a total of $1,000,000 at retirement? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Identify variables and use excelarrow_forward
- Using a present value table, your calculator, or a computer program present value function, answer the following questions: See Table 6-4 and Table 6-5 (Use the appropriate factor by clicking on the appropriate Table links.)Required: What is the present value of nine annual cash payments of $2,000, to be paid at the end of each year using an interest rate of 4%? What is the present value of $20,000 to be paid at the end of 22 years, using an interest rate of 16%? How much cash must be deposited in a savings account as a single amount in order to accumulate $300,000 at the end of 10 years, assuming that the account will earn 8% interest? How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of 12 years, assuming that the account will earn 12% interest? Assume that a machine was purchased for $55,900. Cash of $15,300 was paid, and a four-year, 12% note payable was signed for the balance. Prepare the horizontal model and…arrow_forwardWhat is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is received 7 years from now and you receive a total of 25 annual payments? Could you please show how this can be solve by using Excel? Thank you.arrow_forwardCan you please solve this questionsarrow_forward
- You will deposit $30,000 per year into an account beginning today that pays 13 percent per year. How long (in years) would it take for you want have a total of $1,000,000 at retirement? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Must identify variables and use excelarrow_forward1. Calculate the present value of each cashflow using a discount rate of 7%. Which do you prefer most? Show and explain all supporting calculations. a. Cashflow A: receive Php60 today and then receive Php60 in four years. b. Cashflow B: receive Php12 every year, forever, starting today. Cashflow C: pay Php50 every year for five years, with the first payment being next year, and then subsequently receive Php30 every year for 20 years. d. Cashflow D: receive Php9 every other year, forever, with the first payment being next C. year.arrow_forwardAn annuity pays $200 at the end of each period for 10 periods. Set up the CFs in an Excel spreadsheet. The current value of this stream of CFs is $1,544. What is the implied discount rate? Solve the problem using the following approaches: a. Use trial and error or Goal Seek in Excel (tab Data/What-if-Analysis). b. Use the excel built-in function RATE.arrow_forward
- Annuity Formulae Problem. only need help with d,e,f please. please type and explain You may want to use a spreadsheet to actually find the solutions to some of these problems. But make sure to write out the equations you need to solve in your answers. a. What is the present value of 15 annual payments of $100, with the first payment one year from now, if the discount rate is 0.05? b. What is the present value of 15 annual payments of $100, with the first payment right now, if the discount rate is 0.05? c. What is the present value of 15 annual payments of $100, with the first payment five years from now, if the discount rate is 0.05? d. At what discount rate would the present value of 15 annual payments of $100, with the first payment right now, be 0? e. How many annual payments of $100, with the first payment right now, would it take to be worth more than $1,000, if the discount rate is 0.05? f. What is the value of 15 annual payments which begin at $100 one year from now and increase…arrow_forwardUse the present value and future value tables to answer the following questions. Time Value of Money - Principles of Accounting, Volume 2: Managerial Accounting | OpenStax A. If you would like to accumulate $2,400 over the next 5 years when the interest rate is 15%, how much do you need to deposit in the account? $_____ B. If you place $6,200 in a savings account, how much will you have at the end of 6 years with a 12% interest rate? $_____ C. You invest $7,000 per year for 11 years at 12% interest, how much will you have at the end of 11 years? $_____ D. You win the lottery and can either receive $760,000 as a lump sum or $60,000 per year for 19 years. Assuming you can earn 8% interest, which do you recommend and why? _____arrow_forwardNeed answers this question general Accountingarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Pfin (with Mindtap, 1 Term Printed Access Card) (...FinanceISBN:9780357033609Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage Learning

Pfin (with Mindtap, 1 Term Printed Access Card) (...
Finance
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning